AI Stocks Face a New Force: Structured Money

As AI Grows, So Does the Money Machine Around It February 18, 2026

MorningBullets is the fastest way to catch up on the market and political news that matter most to your money. Quick takes, sharp insight, and curated opportunities—served fresh every weekday morning.

Sponsored Content

Inside Crypto's "Point of No Return"

From 600 interviews: the catalyst to watch, the hidden pattern top earners use, and why this cycle could outpace 2017 and 2021. Get Crypto Revolution free—plus bonus guides.

📥 Download Free + Bonuses

By clicking the link above you agree to receive periodic updates from our sponsor.

Wall Street builds around the AI boom.

Good Morning,

Beneath the surface a bigger shift is taking shape: AI is moving from a breakthrough technology to a full-fledged Wall Street trade. Banks and investors are beginning to package, price, and finance the AI boom in new ways, a change that could amplify both gains and volatility. We break down what this "financialization" of AI means, why it's lifting major tech names, and how rising Treasury yields could still pressure valuations. If you're indexed to the S&P or concentrated in AI leaders, this is the one to read.

Bayer moves to cap Roundup legal risk with a $7.25B settlement, T-Mobile grapples with rising customer churn amid telecom competition, and CEO turnover surges to a 15-year high as boards reshuffle leadership bets.

Don't forget to voice your opinion in my polls below.

Here are your Morning Bullets.

– Truly yours, Fred Frost

📉 Yesterday's Market Recap

Yesterday, the U.S. markets kicked off a holiday-shortened week with cautious optimism—S&P 500 and Nasdaq eked out small gains, while the Dow stayed flat. A sharp sell-off in precious metals, with gold dipping below $5,000 per ounce, stole the spotlight, blamed on thin trading from Chinese holidays. Underneath the surface, individual stock stories like Builders FirstSource's earnings miss kept volatility alive.

S&P 500 and Nasdaq Nudge Higher: Both indexes posted modest gains on February 17, signaling cautious investor sentiment to start the week. → MarketWatch

Gold and Silver Tumble: Gold fell below $5,000/oz and silver under $75/oz, hit by a lack of Chinese market support amid holidays. → StockTwits

Builders FirstSource (BLDR) Slips on Earnings Miss: Shares dipped after Q4 2025 results showed EPS of $1.12 vs. $1.22 expected, with sales down 12.1% year-over-year. → Benzinga

📉 Daily Performance Snapshot

Index/Asset	Closing Value	Change
S&P 500	6,843.22	+7.05 (0.10%)
Nasdaq	22,578.38	+31.71 (0.14%)
Dow Jones	49,533.19	+32.26 (0.07%)
Gold	4,898.10	-148.20 (-2.94%)
Crude Oil	62.21	-0.54 (-0.86%)
Bitcoin	67,536.59	-1,241.77 (-1.80%)
10-yr Treasury Yield	4.06%	-0.05 pp (-1.17%)

🔭 What to Watch Today

Today's calendar is packed with events that could sway markets, from Fed minutes to earnings reports. Keep your eyes on these developments for potential volatility or opportunity.

FOMC Minutes Release (2:00 PM ET): Investors await insights from the Federal Reserve's January meeting for clues on rate policy amid cooling UK inflation data. → Stocktwits

Economic Data Drop: Housing starts and industrial production numbers are due, offering a pulse check on the U.S. economy's health. → CNBC

💡 Opportunity Watch

Amid today's data deluge, a few sectors and stocks stand out as potential plays. Whether it's a strategic pivot or a market reaction, here's where the smart money might look.

Ford (F) EV Push: CEO Jim Farley's Universal EV Platform targets Chinese competition with a 2027 pickup—could be a long-term growth driver. → Benzinga
Coinbase (COIN): Cathie Wood's ARK Invest scooped up $7M in shares, signaling confidence despite mixed earnings—watch for crypto tailwinds. → Stocktwits
HIVE Digital (HIVE): With plans to scale HPC revenue to $225M in 2026, this Bitcoin miner's pivot to AI cloud could attract speculative interest. → Benzinga

Sponsored Content

A New High-Growth Briefing Drops Soon

Themes like AI infrastructure and energy transitions dominated last year. But as the new year begins, the most informative market signals are emerging quietly in the small-cap sector.

Market Maven Insights has released a new research briefing highlighting three companies showing early changes in activity right now.

AI Momentum: Incremental moves in lesser-known names.
Energy Setups: Developing beneath broad sector trends.
Rate Sensitivity: Small caps showing renewed interest.

Access the Free Research Briefing »

By clicking the link you will automatically be subscribed to the Market Maven Newsletter (Privacy Policy)

The Big Bullet

AI "loser" stocks slide as investors favor proven results over big promises

What happened: A fresh wave of selling hit smaller and weaker-performing AI stocks. Investors were reminded that the selloff in "AI losers" has roots going back to 2022, when money started moving toward safer choices. Some AI firms had climbed fast on hope, even before their sales and profits could catch up. As markets turned more careful, those high-hype names became easier to dump. The move looked less like a single-day shock and more like a continued shift in mood. Traders also seemed to separate "AI talk" from "AI earnings." Companies with shaky balance sheets or unclear plans took the biggest hits. The result was a wider gap between AI winners and AI strugglers. In short, the market treated AI like a business cycle, not a magic story.

Why it matters: This kind of split market can change where new investment money goes next. When investors pull back from risky AI names, it can lower prices across the whole "growth" corner of the market. At the same time, it can push more cash toward bigger firms that already have customers, cash flow, and scale. New product news can also move prices quickly, especially when it points to real demand. That is why people are watching possible winners from Chinese New Year AI launches for clues on what users actually want. If demand is real, strong companies can keep gaining even while weaker names fall. If demand is weak, the selling can spread and last longer. For everyday investors, this is a reminder that "AI" is not one trade—it is many different businesses. The market is starting to price that difference in a stricter way.

What's next: Watch for new updates that show who is building AI tools people pay for, and who is just talking. Hardware and infrastructure names may get extra attention if buyers expect steady spending on chips, servers, and data centers. A useful guidepost will be which hardware stocks look best positioned for AI, since that can shape where money rotates next. Also watch whether big-tech leaders keep drawing buyers as a "safer AI" choice. One signal of that trend is Bill Ackman buying shares of Meta Platforms, which can influence how other investors think about large-cap value. In the near term, sharp moves can come from earnings reports, guidance, and any surprise changes in spending plans. If companies say they are cutting AI budgets, markets may react fast. If companies say demand is growing, investors may reward the stronger names and keep punishing the weak ones. Either way, expect more "separating" inside the AI space instead of one big wave up or down.

Reader Feedback

Last time, I asked you: What do you think is really driving the drop in weaker AI stocks?

The majority of you at 72% said "Too much hype, not enough profits"

Elena from Arizona replied: "I think those AI stocks are dropping because there was too much hype and not enough real money being made."

Here's what I'm asking you today:

As big banks turn AI into a major market trade, what do you think happens next?

AI stocks keep climbing — this is just the start

Prices are getting too high — a pullback is coming

The biggest companies win, smaller players get squeezed

Not sure / no strong opinion

Other

As always if your opinion is not here, or you want to throw your two cents at me, reply to the E-mail, and let me know your exact thoughts.

🧭 Policy & Market Ripples

Bayer's $7.25B Roundup Settlement: A massive proposed payout to settle cancer lawsuits tied to glyphosate—could stabilize Bayer's agribusiness outlook if approved. → ABC News
T-Mobile's Customer Churn Woes: Postpaid churn rose to 1.02% in Q4 2025; CEO plans pricing and digital shifts to counter Verizon and AT&T's aggressive offers. → TheStreet
CEO Turnover Hits 15-Year High: S&P 1500 saw 168 new CEOs in 2025, 84% first-timers, as boards bet on internal talent over external hires. → Fortune

📜 This Day in History – February 18

February 18 is a tribute to exploration — of planets, of public knowledge, of industrial processes, and even of fictional universes. It's the kind of day where humanity pushes boundaries in multiple directions at once.